blockworks.co
Mobile NFT platform Floor will let users to buy NFTs in-app, but to do so, it intends to absorb the 30% fees charged by Apple and Google.
Floor, like other NFT marketplace apps, wants to provide a single venue in which to view, trade and collect NFTs. Apple updated its policy last September to allow NFTs to be bought and sold through apps listed on its Store, though it came with a significant catch.
As is the case with non-crypto apps, the tech giant demands a 30% cut on in-app purchases from developers who make more than $1 million annually through its store and 15% for those making less.
Google has a similar fee structure in place. Approved app categories on Google’s Play Store now include games that offer NFTs as rewards, as well as crypto exchanges and wallets.
NFT marketplaces have broadly avoided the fees altogether simply by not allowing in-app purchases. OpenSea, for example, only lets users view their own NFTs and browse those offered on the platform. Its app directs users to its website to actually buy and sell NFTs.
Floor’s founders — former executives at Robinhood and Venmo — hope the ability to buy NFTs directly app will set it apart from the competition.
“Marketplaces like OpenSea can’t operate on mobile today,” co-founder Chris Maddern told Blockworks in an interview. “The ‘marketplace’ exemption doesn’t apply to NFTs and 30% on a peer-to-peer purchase is unviable.”
Though when it comes to primary sales (from artist to collector), Floor believes the remaining 70% will be enough for its business to remain in the black.
Floor raised $8 million in a Series A in June last year, in a round participated by Crypto.com, Eberg Capital and 8th Man Ventures, among others. The name refers to NFT “floor prices,” the lowest value of tokens in a particular collection.
The firm hopes its absorption of the 30% fee leads to an industry-wide push to reduce Apple and Google’s take.
In a statement, Floor said it is working with 10 prominent Web3 artists including Vinnie Hager to launch weekly drops available through in-app buys.
Floor says the app, launched on both Apple and Google app stores last year, has around 25,000 users. It features support for NFTs across Ethereum, Polygon and Solana. More support for other networks is expected in the coming months.